Construction costs see nominal increase in 2009: Xactware

The sluggish economy, combined with the downward trend of the housing market in 2008, might have played a role in keeping construction costs to nominal increases in 2009, according Xactware, a property claims software company.
The global recession played a significant role in driving overall costs associated with the property industry, according to Xactware’s 2009 Property Report: Canada.
Building material costs decreased or stayed relatively flat while retail labour rates hit a plateau.
The price indexes hardest hit last year include:
• The material and labour index only increased 1.34% (2008: 2.23%)
• The retail labour rate index increased only 1.09%
• Cost of lumber dropped 7.81%
• Cost of roofing material declined 3.89%
• Cost of carpet material decreased 1.6%
A number of Canadian disasters, including tornadoes in Ontario, windstorms in Alberta and severe rain in Ottawa and Hamilton, affected the volume and value of claim estimates, the report found.
The total dollar amount for all 121,828 claims estimates in 2009 was $1.1 billion.
Fire losses had the highest value, at $38,681 per estimate, according to the report.
The reconstruction cost index shows Saskatchewan, Alberta and Manitoba reported the highest changes in cost to rebuild during 2009.
New Brunswick, Ontario and Prince Edward Island ranked highest in overall reconstruction costs.
The data was compiled using data gathered from 37 markets throughout Canada.